The QE Index declined 0.1% to close at 10,290.2. Losses were led by the Real Estate and Telecoms indices, falling 0.7% and 0.6%, respectively.

1. Page 1 of 10
QSE Intra-Day Movement
Qatar Commentary
The QE Index declined 0.1% to close at 10,290.2. Losses were led by the Real Estate
and Telecoms indices, falling 0.7% and 0.6%, respectively. Top losers were Qatar
Industrial Manufacturing and Widam Food Company, falling 5.2% and 5.0%,
respectively. Among the top gainers, Qatar General Insurance & Reinsurance
Company gained 7.7%, while Mannai Corporation was up 2.5%.
GCC Commentary
Saudi Arabia: The TASI Index rose 0.1% to close at 8,693.5. Gains were led by the
Pharma, Biotech & Life Science and Health Care Equipment & Svc indices, rising
2.5% and 2.4%, respectively. Dr. Sulaiman Al Habib Medical Services Group rose
7.5%, while Saudi Re for Cooperative Reinsurance Company was up 5.3%.
Dubai: The DFM Index gained 0.3% to close at 2,420.0. The Telecommunication index
rose 1.9%, while the Transportation index gained 0.9%. Ajman Bank rose 3.4%, while
Al Salam Group Holding was up 3.3%.
Abu Dhabi: The ADX index fell 0.3% to close at 4,971.9. The Financial Services &
Investment index declined 2.5%, while the Telecommunication index fell 1.1%.
National Takaful Company and Bank of Sharjah were down 5.0%.
Kuwait: The Kuwait All Share Index declined marginally to close at 5,558.7. The
Utilities index fell 1.5%, while the Consumer Goods index declined 1.1%. First
Investment Company fell 5.3%, while First Takaful Insurance Company was down
5.0%.
Oman: Market was closed on November 26, 2020.
Bahrain: The BHB Index gained 0.4% to close at 1,467.8. The Services index rose
2.0%, while the Industrial index gained 0.9%. Ithmaar Holding rose 6.7%, while
Bahrain Telecommunication Company was up 3.4%.
QSE Top Gainers Close* 1D% Vol. ‘000 YTD%
Qatar General Ins. & Reins. Co. 2.38 7.7 2.2 (3.3)
Mannai Corporation 3.04 2.5 5.1 (1.3)
Dlala Brokerage & Inv. Holding Co. 1.93 1.9 8,277.6 215.1
Medicare Group 8.78 1.4 120.3 3.9
Industries Qatar 10.78 1.2 880.8 4.9
QSE Top Volume Trades Close* 1D% Vol. ‘000 YTD%
Qatar Gas Transport Company Ltd. 3.25 0.7 32,952.0 36.1
Ezdan Holding Group 1.59 (0.8) 19,747.2 158.5
Mazaya Real Estate Development 1.21 0.3 15,520.5 67.6
Salam International Inv. Ltd. 0.61 (1.3) 11,853.0 18.8
Baladna 1.90 (1.3) 10,830.9 89.5
Market Indicators 26 Nov 20 25 Nov 20 %Chg.
Value Traded (QR mn) 414.5 505.7 (18.0)
Exch. Market Cap. (QR mn) 591,490.5 592,579.2 (0.2)
Volume (mn) 156.5 200.0 (21.8)
Number of Transactions 10,856 11,253 (3.5)
Companies Traded 45 47 (4.3)
Market Breadth 14:29 24:19 –
Market Indices Close 1D% WTD% YTD% TTM P/E
Total Return 19,782.58 (0.1) 1.8 3.1 17.5
All Share Index 3,162.88 (0.2) 1.6 2.1 18.1
Banks 4,226.54 (0.3) 1.0 0.1 14.9
Industrials 3,054.51 0.1 4.8 4.2 27.3
Transportation 3,224.54 0.3 2.4 26.2 14.7
Real Estate 1,836.28 (0.7) 2.2 17.3 16.2
Insurance 2,430.73 1.0 (1.1) (11.1) N.A.
Telecoms 928.10 (0.6) 0.5 3.7 13.8
Consumer 8,141.91 (0.2) (0.1) (5.8) 24.1
Al Rayan Islamic Index 4,185.87 (0.2) 2.1 5.9 19.1
GCC Top Gainers## Exchange Close# 1D% Vol. ‘000 YTD%
Dr Sulaiman Al Habib Saudi Arabia 115.00 7.5 1,223.9 130.0
Saudi Kayan Petrochem. Saudi Arabia 12.00 3.4 26,109.2 8.1
Bahrain Telecom Co. Bahrain 0.55 3.4 571.0 43.2
Riyad Bank Saudi Arabia 20.94 2.8 5,667.7 (12.8)
Dar Al Arkan Real Estate Saudi Arabia 8.71 2.1 29,055.7 (20.8)
GCC Top Losers## Exchange Close# 1D% Vol. ‘000 YTD%
Bank Albilad Saudi Arabia 26.95 (1.1) 980.8 0.2
Emirates Telecom Group Abu Dhabi 16.88 (1.1) 2,026.8 3.2
National Comm. Bank Saudi Arabia 43.00 (0.9) 2,022.1 (12.7)
The Commercial Bank Qatar 4.42 (0.9) 1,369.8 (6.0)
Ooredoo Qatar 6.72 (0.9) 825.3 (5.1)
Source: Bloomberg (# in Local Currency) (## GCC Top gainers/losers derived from the S&P GCC
Composite Large Mid Cap Index)
QSE Top Losers Close* 1D% Vol. ‘000 YTD%
Qatar Industrial Manufacturing 3.04 (5.2) 16.1 (15.0)
Widam Food Company 6.60 (5.0) 2,720.0 (2.4)
Qatar National Cement Company 4.00 (2.7) 301.1 (29.2)
Qatari German Co for Med. Dev. 1.75 (2.6) 1,185.9 201.4
INMA Holding 3.48 (1.8) 240.2 83.3
QSE Top Value Trades Close* 1D% Val. ‘000 YTD%
Qatar Gas Transport Co. Ltd. 3.25 0.7 107,540.0 36.1
QNB Group 18.07 (0.3) 53,653.5 (12.2)
Ezdan Holding Group 1.59 (0.8) 31,705.4 158.5
Baladna 1.90 (1.3) 20,742.4 89.5
Mazaya Real Estate Development 1.21 0.3 18,363.1 67.6
Source: Bloomberg (* in QR)
Regional Indices Close 1D% WTD% MTD% YTD%
Exch. Val. Traded
($ mn)
Exchange Mkt.
Cap. ($ mn)
P/E** P/B**
Dividend
Yield
Qatar* 10,290.20 (0.1) 1.8 6.2 (1.3) 112.01 159,323.9 17.5 1.5 3.8
Dubai 2,420.00 0.3 4.5 10.6 (12.5) 65.50 91,661.7 11.3 0.9 4.0
Abu Dhabi 4,971.93 (0.3) 1.2 6.7 (2.0) 116.18 196,031.6 19.2 1.4 4.9
Saudi Arabia 8,693.47 0.1 1.3 9.9 3.6 3,476.71 2,471,532.2 32.9 2.1 2.4
Kuwait 5,558.68 (0.0) 0.6 2.1 13.2 407.72 101,379.2 36.8 1.4 2.4
Oman#
3,623.83 (0.1) (0.1) 1.9 (9.0) 10.70 16,442.5 10.8 0.7 6.8
Bahrain 1,467.81 0.4 1.1 2.8 (8.8) 2.99 22,403.0 14.3 1.0 4.6
Source: Bloomberg, Qatar Stock Exchange, Tadawul, Muscat Securities Market and Dubai Financial Market (** TTM; * Value traded ($ mn) do not include special trades, if any. #Data as of November 24, 2020)
10,200
10,250
10,300
10,350
9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00

2. Page 2 of 10
Qatar Market Commentary
 The QE Index declined 0.1% to close at 10,290.2. The Real Estate and
Telecoms indices led the losses. The index fell on the back of selling
pressure fromQatari shareholders despite buying support from GCC, Arab
and Foreign shareholders.
 Qatar Industrial Manufacturing and Widam Food Company were the top
losers, falling 5.2% and 5.0%, respectively. Among the top gainers, Qatar
General Insurance & Reinsurance Company gained 7.7%, while Mannai
Corporation was up 2.5%.
 Volume of shares traded on Thursday fell by 21.8% to 156.5mn from
200.0mn on Wednesday. Further, as compared to the 30-day moving
average of 234.4mn, volume for the day was 33.2% lower. Qatar Gas
Transport Company Ltd. and Ezdan Holding Group were the most active
stocks, contributing 21.1% and 12.6% to the total volume, respectively.
Source: Qatar Stock Exchange (*as a % of traded value)
Ratings and Global Economic Data
Ratings Updates
Company Agency Market Type* Old Rating New Rating Rating Change Outlook Outlook Change
First Abu Dhabi
Bank
R&I Abu Dhabi IR AA- AA- – Stable –
Kuwait
Investment Co.
Moody's Kuwait
LTR/LT-
CFR/PD
– Ba2/Ba2/Ba2 – Negative –
Source: News reports, Bloomberg (* IR – Issuer Rating, LT – Long Term, LTR – Long Term Rating, CFR – Corp. Family Rating, PD – Probability of Default)
Global Economic Data
Date Market Source Indicator Period Actual Consensus Previous
11/26 EU European Central Bank M3 Money Supply YoY Oct 10.5% 10.3% 10.4%
11/27 EU European Commission Consumer Confidence Nov -17.6 – -17.6
11/26 Germany GfK AG GfK Consumer Confidence Dec -6.7 -4.9 -3.2
11/27 France INSEE National Statistics Office CPI MoM Nov 0.2% 0.0% 0.0%
11/27 France INSEE National Statistics Office CPI YoY Nov 0.2% 0.1% 0.0%
11/27 France INSEE National Statistics Office PPI MoM Oct 0.1% – 0.3%
11/27 France INSEE National Statistics Office PPI YoY Oct -2.0% – -2.3%
11/27 France INSEE National Statistics Office GDP QoQ 3Q2020 18.7% 18.2% 18.2%
11/27 France INSEE National Statistics Office GDP YoY 3Q2020 -3.9% -4.3% -4.3%
11/27 Japan Statistics Bureau of Japan Tokyo CPI YoY Nov -0.7% -0.5% -0.3%
11/27 India Ministry of Statistics and Programme Implementation GDP YoY 3Q2020 -7.5% -8.2% -23.9%
11/27 India Ministry of Statistics and Programme Implementation GVA YoY 3Q2020 -7.0% -7.7% -22.8%
Source: Bloomberg (s.a. = seasonally adjusted; n.s.a. = non-seasonally adjusted; w.d.a. = working day adjusted)
Overall Activity Buy %* Sell %* Net (QR)
Qatari Individuals 39.22% 37.30% 7,966,493.8
Qatari Institutions 11.89% 18.61% (27,844,572.5)
Qatari 51.11% 55.91% (19,878,078.7)
GCC Individuals 1.22% 0.62% 2,493,604.1
GCC Institutions 3.32% 2.73% 2,446,682.1
GCC 4.54% 3.35% 4,940,286.1
Arab Individuals 10.07% 9.01% 4,401,750.0
Arab 10.07% 9.01% 4,401,750.0
Foreigners Individuals 2.80% 2.78% 81,377.2
Foreigners Institutions 31.47% 28.94% 10,454,665.3
Foreigners 34.27% 31.73% 10,536,042.6

3. Page 3 of 10
News
Qatar
 QIIK’s lending portfolio 'very well diversified', says CEO – Qatar
International Islamic Bank’s (QIIK) lending portfolio is very well
diversified, focusing on all key segments such as retail, small
businesses and large corporate, according to QIIK’s CEO,
Abdulbasit Ahmed Al-Shaibei. Al-Shaibei said in an interview
with Gulf Times, “We focus significantly on IT systems and risk
mitigation. In 2021, we will continue investing in technology,
risk mitigation and human resources. QIIK would continue to
spruce up its nation-wide network, giving a uniform look to all
its branches. That said, we want to discourage our customers to
come to the branch – unless of course, there is a pressing need.
We do this by providing everything through digitalization,
alterative channels. When there is an actual requirement,
customers may have come to our branches. We understand
that.” Asked whether QIIK plans to raise any debts in 2021, Al-
Shaibei said, “We have some maturity next year in terms of
Sukuk – because according to our equity base, we reached the
maximum in terms of Sukuk issuances. But now with some
Sukuks maturing next year, we will have to decide whether to
replace or close them. We are waiting for the market and
liquidity conditions to emerge – no decision have been taken as
yet.” Referring to QIIK’s joint venture bank in the Kingdom of
Morocco- Umnia, Al-Shaibei said, “Definitely, Morocco has
slowed down – like every other country, because of COVID-19.
But in general, Umnia Bank is working according to the initial
business module. It was a tough year for the JV bank - but we are
expecting it to reach a breakeven point - a year from now.” (Gulf-
Times.com)
 Qatar registers about 10% MoM expansions in trade surplus to
QR7.05bn in October – A robust growth in exports to Asian
countries helped Qatar register about 10% MoM expansion in
trade surplus to QR7.05bn in October this year, according to
official statistics. The country's merchandise trade surplus,
however, witnessed a 39.6% fall YoY this October, according to
the figures released by the Planning and Statistics Authority
(PSA). The Asian region accounted for about 66% of Qatar's
exports with India, Japan and China occupying the first three
slots; while the imports came from diversified geographies. In
October 2020, total exports of goods (including exports of goods
of domestic origin and re-exports) were QR15.3bn, showing more
than 14% surge on a monthly basis but declined 23.5% on yearly
basis. On a monthly basis, the exports of petroleum gases and
other gaseous hydrocarbons rose 18.5% to QR9.73bn, crude by
11.5% to QR2.09bn and other non-specified commodities by
8.3% to QR2.18bn; while those of non-crude plummeted 39.1%
QR0.5b2n in October 2020. The exports of petroleum gases and
other gaseous hydrocarbons shrank 18.1% YoY, non-crude by
62.4%, crude by 39.6% and other commodities by 12.4%.
Petroleum gases constituted 67% of the exports of domestic
products compared to 62% a year ago period, crude 14% (18%),
non-crude 4% (7%) and other commodities 15% (13%). The
country's re-exports amounted to QR0.8bn in October 2020,
which shot up 65.6% on a monthly basis; even asit declined 2.3%
YoY. Qatar's total imports (valued at cost insurance and freight)
amounted to QR8.27bn, which showed a 18.3% surge MoM; but
fell 1% YoY in the review period. (Gulf-Times.com)
 Ooredoo enhances productivity at QBC with smart fleet
management – Ooredoo announced that Qatar Building
Company (QBC) had seen strong success on transforming its
vehicle operations with the Ooredoo Fleet Management solution
powered by the Internet of Things, with the rollout to 1,000
vehicles started last year. Founded in 1971, QBC is one of Qatar’s
longest-standing and most innovative construction companies.
With QBC’s work ramping up amid the wide range of mega-
projects boosted by Qatar National Vision 2030, the company
faced challenges in keeping track of its fleet of more than 1,000
vehicles – costing it time and money, Ooredoo said in a press
statement. In response, over the past year, QBC has rolled out
the Ooredoo Fleet Management solution across its different
types of fleet vehicles. Qatar Building Company now
automatically re-routes drivers when needed to avoid delays,
has real-time visibility of vehicle resources at any time, and can
even increase safety by avoiding situations such as sharp turns
or speeding. (Gulf-Times.com)
 Qatar Chamber panel reviews controls to limit cases of bounced
cheques – Qatar Chamber’s Banking and Investment Committee
recently held a meeting to discuss the newly-issued instructions
and controls by the Qatar Central Bank (QCB) to limit the cases
of bounced cheques, as well as the expected effects of these
instructions on economic activity. During the meeting, which
was presided over by Qatar Chamber’s board member, Nasser
Sulaiman Al-Haidar, the committee members welcomed the
procedures that aim to address the issue of bounced cheques.
The meeting also discussed preventing the issuance of new
cheque books for individuals and companies that issued bounced
cheques, as issuing new cheque books is related to the payment
of bounced cheques in accordance with QCB’s instructions. The
discussion also touched on the effect of suspending the accounts
of companies that issued bounced cheques, as well as the bank’s
refusal to issue cheque books until the concerned party has
settled the cheques. The committee urged businessmen to be
careful in signing cheques and not to issue any cheque until
making sure that there is sufficient account balance. The
committee stressed that the QCB’s decision is sound and will
serve the national economy, and that it prevents any problems
between customers and businessmen in the future. (Gulf-
Times.com)
 Weekly property sales cap QR1bn, says Ezdan report – A
remarkable rise was monitored in the weekly property sale
activity as reflected in the bulletin released by the Real Estate
Registration Department, which recorded total gains of
QR1.02bn from property sale activity, according to the Ezdan
Real Estate (Ezdan) report. Building sale deals have controlled
the sale activity, forming the chunk of total volume generating
as much as QR580.2mn, or 56.8% of total property sale, while
vacant lands of all kinds made a QR441mn net value, or 43.2%,
said the report. The breakdown of the weekly property sale
activity from November 15 to 19, 2020 showed that the deals
made a total value of QR1.02bn divided into the municipalities of

4. Page 4 of 10
Umm Salal, Al Khor, Al Thakhira, Al Doha, Al Rayyan, Al
Shamal, Al Daayen, and Al Wakrah, which included vacant
lands, residences, multi-use buildings, mixed-use space and
residential buildings. Doha municipality has seen the highest
deal in terms of value by selling a residential tower in The Pearl
at a value of QR356mn. The tower spans over an area of 6,443
square meters and sold at QR55,254 per square foot. (Gulf-
Times.com)
 Automatic entry permits’ for residents from today – The
Government Communications Office (GCO) has announced that
residents who are currently in Qatar, and wish to travel and
return to the country, will automatically receive an Exceptional
Entry Permit upon departure with effect from Sunday,
November 29. Also, the quarantine period will be one week only
after arrival in the country, irrespective of where a person is
coming from, according to a statement issued by the GCO. The
statement noted that in continuation of the gradual lifting of
restrictions imposed in Qatar as a result of the COVID-19
pandemic, and based on public health indicators in the country
and around the world, as well as on Qatar’s travel policy
announced previously. (Gulf-Times.com)
 Qatar, Turkey enhance cooperation with several pacts; Qatar
inks deal for minority stake in Turkish stock exchange – Sixth
meeting of Qatar-Turkey Supreme Strategic Committee reviews
the outcomes of previous meetings and ways to enhance the
committee’s work. Memorandum to purchase a stake in Istinye
Park shopping centre signed. MoU between Qatar Investment
Authority and Altin Halic of Turkey on potential joint
investment in the Golden Horn project signed. Agreements to
purchase a stake in Borsa Istanbul, selling and purchase of
Ortadogu Antalya port between Global Liman and QTerminals
concluded. Qatar Free Zones Authority and the Turkish Ministry
of Trade sign MoU on cooperation in the free zones. Qatar
Investment Authority signed a memorandum of understanding
with its Turkish counterpart known as TWF to purchase a 10%
stake in Borsa Istanbul AS. The agreement for a minority stake
in the company that runs the main Turkish stock exchange, for
an undisclosed amount, was unveiled at a ceremony at the
presidential palace in Turkey’s capital Ankara. The Gulf state
also signed another preliminary deal to invest in a multibillion
dollar port project in Istanbul and finalized an earlier agreement
to buy a stake in Istinye Park, one of Istanbul’s largest shopping
mall that’s popular among tourists from the Middle East. The
deals and the fanfare surrounding their signing highlight the
growing alliance between the two countries since a coup attempt
against Erdogan in 2016. The agreement on Borsa Istanbul, if
finalized, would reduce the Turkish sovereign wealth fund’s
stake in the company to 80.6%. The stake sale comes around a
year after TWF purchased EBRD’s 10% stake in the bourse.
(Peninsula Qatar, Bloomberg)
 Al-Jaida: New investment avenues opening up in Qatar on
COVID-19 handling success – Doha’s excellent handling of the
COVID-19 pandemic has made the business ecosystem further
lucrative with new avenues of investments opening up for
investors, according to the top official of the Qatar Financial
Centre (QFC). “We have seen increasing level of interests from
foreign investors looking to enter market that offer diverse
opportunities with low levels of unforeseen risks,” QFC
Authority’s Chief Executive, Yousuf Mohamed Al-Jaida told a
webinar on ‘Strategic Risk Management – Factors to Consider
When Investing in and out of Qatar’. Having absorbed several
shocks, including a series of fluctuations in global oil prices over
the past decade and the ongoing pandemic; he said the country’s
institutions have become resilient to guarantee conducive
environment for the business growth. In this regard, he cited
that several global institutions such as the International
Monetary Fund (IMF) and theWorld Bank have projectedQatar's
real gross domestic product (GDP) to bounce back. In its latest
World Economic Outlook, the IMF said Qatar’s real GDP has been
projected to rebound and grow at 2.5% in both 2021 and 2022
compared to a -4.5% change this year. (Gulf-Times.com)
 Official: Qatar is making proactive efforts to deal with
repercussions of pandemic – Qatar is making proactive efforts to
deal with the repercussions of the pandemic by investing in
innovation, technology and science to enable urgent and
effective measures to contain the virus and mitigate its impact,
according to a top government official. The local private sector
has a key role in overcoming the repercussions of the pandemic
and seized the opportunity that the crisis offered, especially in
the trade and industry sectors, to develop its storage, import and
production capacity and to improve the quality of imported and
locally manufactured goods, Sultan bin Rashid Al-Khater,
Undersecretary of the Ministry of Commerce and Industry
(MoCI), told a virtual session organized by Italy’s Ministry of
Foreign Affairs and International Co-operation and the Italian
Institute for International Political Studies (ISPI). The MoCI, in
turn, supported the State's efforts to weather the coronavirus
crisis and adopted a flexible and integrated strategy aimed at
protecting the private sector and providing companies with the
necessary support to adapt to the current circumstances after
the gradual lifting of restrictions, he said at a session themed
‘Restructuring Middle East and North African Economies After
COVID-19’. (Gulf-Times.com)
International
 ECB's Lane warns against tolerating low inflation as more
stimulus looms – The European Central Bank’s (ECB) Chief
Economist warned on Thursday that accepting “a longer phase
of even lower inflation” would hurt consumption and
investment as well as cementing expectations for low price
growth in the future. The ECB is preparing a new stimulus
package to help cushion the impact of the coronavirus pandemic.
It is also reviewing the way it goes about its business, after
failing to raise inflation to its target for almost a decade. Lane
said that simply letting price growth undershoot the ECB’s target
of just under 2% was not an option. “Tolerating a longer phase of
even lower inflation ... than originally envisaged would be costly
and risky,” Philip Lane told an academic audience via weblink.
“First, it would imply a weaker recovery of consumption and
investment, as a result of higher expected real interest rates.
Second, it would contribute to a downward drift in inflation
expectations that might become entrenched.” Fellow ECB board
member, Isabel Schnabel said this week the central bank should
consider taking longer to raise inflation to its 2% target as its
ultra-easy policy is constrained, has side effects and risks
alienating the public. Under its strategic review, the ECB is
expected to change its goal to 2% over an unspecified “medium

5. Page 5 of 10
term” and reaffirm its commitment to symmetry, meaning that
any undershooting of the target should be taken as seriously as
an overshooting. The euro zone’s central bank has kept the
money taps wide open for years and promised further stimulus,
likely in the form of even more bond purchases and subsidized
loans to banks, at its December 10 meeting. (Reuters)
 BoE's Haldane sees inflation risks as economies bounce back –
Bank of England (BoE) Chief Economist, Andy Haldane said
inflation could rise by more than expected as progress on COVID-
19 vaccines and huge amounts of stimulus raised the chances of
a swift economic bounce-back. “As the economic recovery
gathers pace next year, it will be important central banks remain
squarely focused on their core medium-term price stability
mandates,” Haldane said in a speech to a University College
London webinar on Saturday. Haldane has consistently sounded
more upbeat than his fellow interest-rate setters about the
prospects for an economic recovery in Britain after the record
25% slump triggered by the first coronavirus lockdown in the
spring. The BoE’s nine-member Monetary Policy Committee has
stressed that it will not be in a hurry to tighten monetary policy
by saying it first wanted to see clear evidence of “significant
progress” to hitting its 2% inflation target sustainably. Haldane
said recent news of progress with the development of COVID-19
vaccines “offers some economic light at the end of the long, dark
tunnel of this year” and there could be a rapid economic recovery
in Britain and globally. “Taken together with the huge amounts
of policy stimulus provided this year, this will in my view leave
risks to the economic outlook more evenly balanced than for
some time, including risks to inflation over the medium term,” he
said. Britain’s most recent consumer price index showed
inflation at 0.7%. (Reuters)
 UK's Sunak says public finances are on "unsustainable" path –
British Finance Minister, Rishi Sunak said on Thursday that
record public borrowing is not forecast to fall fast enough to be
sustainable, the closest he has come to acknowledging that
taxes will need to rise once the coronavirus pandemic is over.
“(There are) record peacetime highs in borrowing and debt, and
the forecasts that were set out yesterday show us on a path
where that continues to be at a very elevated level, so that’s not
a sustainable position,” Sunak told the BBC. Sunak declined to
commit specifically to tax rises, saying any decision would need
to wait for his annual budget statement due early next year.
Previously he has said that hard choices would need to be made
on the public finances after the pandemic, which has killed more
than 55,000 people in Britain and led to the biggest collapse in
economic activity in more than 300 years. “Once we get through
this and we have more certainty about the economic outlook,
we’ll need to look at how we can make sure we have a strong set
of public finances,” he added on Thursday. Bank of England
Governor, Andrew Bailey, speaking to a BBC local radio station,
said Sunak was taking the right approach by spreading the
financial cost of the pandemic over many years. (Reuters)
 Brexit negotiations restart in person as clock ticks down – Face-
to-face negotiations between Britain and the European Union
(EU) over a trade deal restarted earlier on Saturday as the two
sides make a last ditch attempt to reach an agreement with just
five weeks to go before their current relationship ends. There is
currently no call scheduled between UK Prime Minister, Boris
Johnson and EU Commission president Ursula von der Leyen, a
UK source told Reuters, after the Times newspaper reported the
pair would speak in the next 48 hours. The first sign of
movement -- either towards a deal or that talks are crumbling --
is likely to be a call between Johnson and von der Leyen. The
Times also reported that the European Commission has started
to “lean on” EU negotiator, Michel Barnier to reach a deal with
Britain, raising hopes that an agreement could come. Barnier and
Britain’s negotiator David Frost are working to secure a deal
before the UK’s transition period with the EU ends on December
31. Both sides said on Friday that there were still big differences
to overcome, as they both called for the other to compromise on
the three main issues of contention - fishing, state aid and how
to resolve any future disputes. (Reuters)
 Analysis: German stimulus fails to turn anxious savers into big
spenders – German consumers remain gloomy ahead of the
traditionally big-spending Christmas season and a temporary
reduction in sales tax worth up to EUR20bn has failed to get
them into shops or online -- even when companies have passed
it on. The six-month cutin value-added tax from 19% to 16% was
the center piece of a $155bn stimulus package launched by
Finance Minister, Olaf Scholz in June to drag Europe’s biggest
economy out of a pandemic-induced slump. Those measures,
including cash handouts for parents and incentives to buy
“green” cars, helped fuel growth of 8.5% in July-September, a big
rebound from the previous quarter’s unprecedented 9.8%
plunge. But households remain focused on savings while many
firms have used the VAT relief to shore up their battered margins
rather than lowering retail prices, data and interviews show.
“Even if I wanted to spend more on the things that I like such as
travelling and going out, I simply can’t right now due to the
lockdown,” Berliner Philipp von Bremen said, 42, who worked
reduced hours in the film industry during the pandemic. “So I’m
definitely spending less than normally.” (Reuters)
 Japan's capital sees prices fall most in over eight years as COVID-
19 pain persists – Core consumer prices in Tokyo suffered their
biggest annual drop in more than eight years, data showed on
Friday, an indication the hit to consumption from the
coronavirus crisis continued to heap deflationary pressure on the
economy. The data, which is considered a leading indicator of
nationwide price trends, reinforces market expectations that
inflation will remain distant from the Bank of Japan’s 2% target
for the foreseeable future. “Consumer prices will continue to
hover on a weak note as any economic recovery will be
moderate,” Dai-ichi Life Research Institute said, which expects
nationwide core consumer prices to fall 0.5% in the fiscal year
ending March 2021. The core consumer price index (CPI) for
Japan’s capital, which includes oil products but excludes fresh
food prices, fell 0.7% in November from a year earlier,
government data showed, matching a median market forecast.
It followed a 0.5% drop in October and marked the biggest annual
drop since May 2012, underscoring the challenge policymakers
face in battling headwinds to growth from COVID-19. The slump
in fuel costs and the impact of a government campaign offering
discounts to domestic travel weighed on Tokyo consumer prices,
the data showed. (Reuters)
 Reuters poll: China's factory growth likely edged up in November
– China’s factory activity likely expanded at a slightly faster

6. Page 6 of 10
pace in November, a Reuters poll showed on Friday, as the
world’s second-largest economy steadily recovers from the
coronavirus crisis. The official manufacturing Purchasing
Manager’s Index (PMI) is expected to rise slightly to 51.5 in
November from October’s 51.4, according to the median forecast
of 22 economists polled by Reuters. A reading above 50 indicates
an expansion in activity on a monthly basis. China’s vast
industrial sector is steadily returning to the levels seen before
the pandemic paralyzed huge swathes of the economy early this
year. Premier Li Keqiang said on Tuesday he expects economic
activity to return to a reasonable range next year. Profits at
industrial firms grew in October for a sixth consecutive month
and at their quickest pace since early 2017, data showed on
Friday. “Overall, we believe China’s economic recovery remains
largely on track and maintain our real GDP growth forecast of
5.7% YoY for Q4, up from 4.9% in Q3. We firmly believe Beijing
will maintain its policy stance,” analysts at Nomura said in a
note on Friday. The Chinese economy is expected to expand
around 2% for the full year - the weakest in over three decades
but still much stronger than other major economies which are
still battling to contain virus infections. (Reuters)
 India's economy shrinks 7.5% YoY in July-September quarter –
Indian economy contracted 7.5% in the quarter to September,
government data showed on Friday, showing some signs of a
pick-up after the easing of pandemic restrictions that triggered a
record contraction of 23.9% YoY in the previous quarter. The
read-out for the September quarter was better than the 8.8%
contraction forecast of analysts in a Reuters poll. (Reuters)
 India's April-October fiscal deficit tops 126.7% of full year target
– India’s federal fiscal deficit in the seven months to end-October
stood at $128.9bn, or 126.7% of the budgeted target for the whole
fiscal year, government data showed on Friday. Net tax receipts
were INR5.76tn, down 15.7% from a year ago, while total
expenditure was INR16.6tn, the data showed. The deficit is
predicted to exceed 8% of GDP in the 2020/21 fiscal year that
ends in March 2021, economists said, from initial government
estimates of 3.5%, mainly due to a sharp economic contraction
triggered by the coronavirus pandemic. (Reuters)
 India's economic contraction slows as vaccines boost recovery
hopes – The contraction of the Indian economy eased off in the
three months to September amid signs of a pick-up in
manufacturing, and economists expect a steady recovery next
year if progress on coronavirus vaccines feeds consumer
demand. Prime Minister, Narendra Modi expects the recent
easing of farm and labor laws, along with tax incentives, to
bolster manufacturing and lure more foreign investment. India’s
GDP in July-September quarter contracted 7.5% on year, data
released by the National Statistical Office on Friday showed,
compared to a decline of 23.9% in the previous three months.
Analysts in a Reuters poll had forecast an 8.8% contraction in
the latest period. Annual growth of 3.4% in farm sector and 0.6%
in manufacturing during September quarter raised hopes of an
early recovery as the government gears up to distribute
coronavirus vaccines to a country with about 1.4bn people. “The
Q2 GDP numbers are encouraging,” Chief Economic Advisor at
the ministry of finance, Krishnamurthy Subramanian said after
the release of the data. (Reuters)
Regional
 OPEC+ panel's informal online talks postponed to Sunday – A
panel of OPEC+, a group of leading oil producing countries, will
hold informal online talks on Sunday - a day later than scheduled
- prior to meetings planned for next week, a source with the
knowledge of the matter told Reuters. The talks had initially
been scheduled for Saturday, according to a letter seen by
Reuters and the source. The source said they will be now held on
Sunday. No reason for the postponement has been given. OPEC+
is debating whether to ease oil output cuts from January 1, as it
previously agreed, or to continue producing at the same rate
amid sluggish oil demand and the fallout from the coronavirus
pandemic. The letter from the Organization of the Petroleum
Exporting Countries, seen by Reuters, had initially said Russian
Deputy Prime Minister Alexander Novak will attend Saturday’s
informal consultations of the Joint Ministerial Monitoring
Committee’s heads. Novak was Energy Minister until earlier this
month, leading Moscow’s efforts to forge close ties with OPEC
and clinch the deal on output cuts. Saudi Arabia will be
represented by its Energy Minister, Prince Abdulaziz bin Salman.
OPEC+ will meet on November 30 and December 1 to decide
output policy for next year. (Reuters)
 OPEC+ watchers expect group to delay supply boost by three
months – OPEC and its allies will likely delay a supply increase
planned for January by three months, according to a survey of oil
analysts, traders and refiners. The 23-nation coalition that
includes Russia will probably defer the 1.9mn-barrel hike when
they meet next week, according to all but two of 36 respondents
to the poll. Twenty-seven predicted a delay until the start of the
second quarter. While crude prices have rebounded to an eight-
month high, demand in early 2021 still looks too fragile to absorb
the extra barrels. At the same time, some key OPEC+ members
like Iraq have signaled they’re eager to ramp up sales as soon as
possible. “OPEC+ will make good on its commitment to be
proactive and adjust to evolving market circumstances, notably
short-term economic and oil demand weakness,” Head of
commodity markets strategy at BNP Paribas, Harry
Tchilinguirian said. “A three-month delay will allow for a
consensus to be reached quickly, without too much push back
from members eager to start increasing their output again.”
(Gulf-Times.com)
 Gulf bonds likely to set new record in 2021 amid budget squeeze
– International debt sales from the six-member GCC are likely to
notch another record year in 2021 as governments need to fill
wider deficits and corporates look to grab money on the cheap
amid low rates. The oil-rich region saw a second consecutive
year of record international bonds, topping $100bn, as issuers’
finances were battered by the COVID-19 pandemic along with
low oil prices, with a few issues still possible before year-end. “I
think overall,the market will grow. We can easily add $7bn-10bn
more to 2020 total issuance,” Head of debt capital markets for the
Middle East and North Africa at Deutsche Bank, Khalid Rashid
said. S&P said in July GCC government balance sheets are
expected to continue to deteriorate up until 2023. Kuwait, which
has not issued dollar bonds since 2017, could return to the
market next year, depending on a new debt law which would
allow it to raise more funds overseas and help it overcome a
liquidity crunch. Chief Economist at Samba Financial Group,
James Reeve estimated Saudi Arabia’s financing requirements at
around $60bn next year, of which around $18bn would be

7. Page 7 of 10
covered via Eurobonds. More issuance is expected from Dubai,
which in September returned to the public debt markets for the
first time in six years. Bankers expect it to issue another $2bn
next year as key sectors of its economy continue to be squeezed.
For sub-investment grade Bahrain and Oman, issuing debt is
vital to replenish dwindling foreign reserves, though Oman may
need explicit support from Gulf neighbors as investors are
increasingly concerned about its worsening credit trajectory.
Head of equity strategy at Tellimer, Hasnain Malik said he
expects more consolidation among government-related
enterprises, removing duplicated cost, and “raising of debt for
the stronger business models that result from this consolidation
is likely.” Among corporates, a new entry could be Abu Dhabi
National Oil Company (ADNOC), which received a credit rating
last year, a banker said. (Reuters)
 BP to invest more in Middle East’s ‘world-leading’ oil fields – BP
said it will invest more money in Middle Eastern oil and natural-
gas fields even as it transitions to renewable energy and tries to
lower emissions. The company is a major producer in countries
such as Iraq, where it operates the world’s third-largest oil field
of Rumaila, the UAE and Oman. It is focusing on their low-cost
oil, while also boosting output of gas, according to BP’s Senior
Vice President for the Middle East, Stephen Willis. “We will
continue to invest in these,” Willis said, without specifying how
much BP planned to spend. Deposits in Iraq, the UAE Emirate of
Abu Dhabi and Oman have “world-leading operating cost,
capital cost and production efficiency performance.”
(Bloomberg)
 Saudi Arabia raises SR795mn from Sukuk offering – Saudi Arabia
raised SR795mn from its local Sukuk offering in November,
State-run SPA said. The first tranche was for SR200mn, second
tranche of SR595mn. (Bloomberg)
 Saudi Arabia broadens Central Bank’s mandate to promote
growth – The Saudi Central Bank updated its mandate to include
supporting economic growth as one of its prime objectives,
formally changing its fundamental operating principles for the
first time in more than 60 years, Vice-Governor, Ayman Alsayari
said. “Including support of economic growth as an explicit
element in the central bank’s mandate is meant to cover
evolving variables such as financial innovation, which has the
potential to foster economic growth if steered in the appropriate
direction,” Alsayari said in a written response to questions from
Bloomberg on Thursday. The central bank’s new charter also
reflects “changes in the financial sector and new types of risk,”
he said. The bank now reports directly to the king under the new
charter, a move intended to “make its independent status clearer
and more explicit,” he said. (Bloomberg)
 Saudi, Abu Dhabi wealth funds team up on Egyptian drug maker
deal – Two of the biggest sovereign wealth funds in the Middle
East are exploring a joint bid for an Egyptian pharmaceutical
company, a deal that could mark the beginning of wider co-
investment plans between thetwo state-controlled firms, people
familiar with the matter said. Saudi Arabia’s Public Investment
Fund and ADQ, formerly known as Abu Dhabi Development
Holding Co., are weighing the purchase of Bausch Health Cos.’s
Cairo-based drug unit, sources said. In addition, the two funds
have held talks to work closely on other transactions in areas
such as food security, health care and industrials, sources said.
(Bloomberg)
 Russia, Saudis convene informal OPEC+ talks on November 28 –
Russia’s Deputy PM, Alexander Novak and Saudi Energy
Minister, Abdulaziz bin Salman will host informal talks on
November 28 between OPEC+ ministers who oversee the group’s
production cuts deal, according to a letter seen by Bloomberg, in
last-minute preparations for a full meeting of the cartel on
November 30-December 1. Ministers from the Joint Ministerial
Monitoring Committee, which includes Algeria, Kazakhstan,
Iraq, Nigeria and the UAE, were all invited, according to the
letter dated November 25. (Bloomberg)
 S&P affirms Saudi Electric 'A-' ratings; outlook Stable – Saudi
Arabia's Electricity & Cogeneration Regulatory Authority
(ECRA) announced significant reforms in the power sector such
that Saudi Electric Co. (SEC) will now operate with a regulated
asset base (RAB) model and an effective 100% cost pass-through
model. In addition, the Ministry of Finance (MOF) restructured
SEC's government payables (including interest free loans, fuel
liabilities, and dividend liabilities) into a shareholder instrument
of SR167.9bn held by the MOF, which S&P treats as equity.
Based on the improved business and financial risk profile, S&P
has revised upward our stand-alone credit profile assessment for
SEC to 'bbb-' from 'bb-'. S&P views the implementation of an
unrestricted and uncapped balancing account, which covers
shortfalls in annual revenue, as more comprehensive than RAB
models in other jurisdictions. In S&P’s view, extraordinary
government support could be provided to SEC either within or
outside of the new regulatory framework. S&P therefore
continues to consider government support as almost certain to
be provided to SEC if needed. S&P is affirming 'A-' rating on SEC
and its rated instruments, which mirrors that on Saudi Arabia.
The outlook is stable. S&P continues to equalize our rating on
SEC with that on Saudi Arabia as we expect continued
extraordinary support and involvement an addition to
regulatory reforms. This is based on our opinion that the Saudi
Arabian government would almost certainly provide timely and
sufficient extraordinary support to SEC in the event of financial
distress. The introduction of the regulatory reforms does not
change our view of support, because, while earlier ongoing and
extraordinary state support was provided as needed using
various means (including interest-free loans, dividend waivers,
assumption of liabilities by the government), now the
parameters of financial support are more clearly defined via the
framework. The unrestricted and uncapped balancing account
provides a clear mechanism for ongoing and, if needed,
extraordinary government support. Furthermore, S&P believes
that the government can still provide extraordinary support over
and above the framework if required. Our assessment of the
government's likelihood of support is based on SEC's: Critical role
in providing essential power generation, transmission, and
distribution services in Saudi Arabia and its central role in
meeting the government's key economic and social objectives.
Integral link with the government, which maintains very tight
control over SEC's strategy. Furthermore, under the new
regulatory framework, SEC will be compensated for shortfalls in
annual revenue by the unrestricted and uncapped balancing
fund. Any financial distress caused to the company by events
not met under the RAB model, would, S&P believes, also be met

8. Page 8 of 10
by the government. S&P views are supported by a track record of
SEC receiving significant financial support in the past. The new
regulatory environment in Saudi Arabia is more predictable and
transparent, leading S&P to revise upward the business risk
profile to satisfactory from fair. (Bloomberg)
 UAE to grant citizens $2bn in homes, land, mortgages – Abu
Dhabi’s government is granting $2bn in homes, land parcels and
mortgage loans to more than 6,100 citizens in the United Arab
Emirates ahead of the country’s National Day on December 2,
the Abu Dhabi Media Office reported on Saturday. The
government will also exempt some retirees and families of
deceased citizens from mortgage repayments, the media office
said. Citizens make up a small minority of the UAE’s
predominately expatriate population. Many have suffered from
the impact of the coronavirus pandemic and oil price collapse has
wreaked havoc on the country’s economy. (Bloomberg)
 UAE banks’ assets up 7.6% at $885bln – Total assets of banks
operating in the UAE increased by 7.6% YoY at the end of
September and 2% QoQ to AED3.253tn, the Central Bank of the
UAE (CBUAE) said. The apex bank’s report said combined gross
credit of the banks rose by 4.9% YoY and 0.8% QoQ, reaching
AED1.805tn at the end of September. The report, which has
examined the monetary and banking activities as well as
developments in the UAE financial markets during the third
quarter of 2020, also reviewed ratios of annual change over the
period from September 2019 to September 2020. Total deposits
of resident and non-resident customers with banks operating in
the UAE rose by 2.2% QoQ, reaching AED1.907tn at the end of
the third quarter. (Zawya)
 Dubai gets Arab Gulf’s first, and perhaps last, coal power plant –
The UAE is set to become the first Arab Gulf country to generate
electricity from coal. As governments increasingly turn to
cleaner fuels and the price of renewable energy falls, it may also
be the last. Dubai is starting up the $3.4bn Hassyan coal plant,
with capacity being increased from an initial 600 mega-watts to
2,400 by 2023. Japan’s Jera Co. will supply coal under a long-term
agreement with Acwa Power of Saudi Arabia, which is
developing the plant. (Bloomberg)
 ADNOC awards $519mn contract to CNPC unit for 3D Seismic
survey – ADNOC awards the contract to BGP Inc., a unit of China
National Petroleum Co. worth $519mn, to expand the 3D onshore
and offshore seismic survey currently taking place in the oil-rich
emirate. Contract brings the total area to be covered by the
survey up to 85,000 square kilometers and increases scope to
capture coastal areas, islands and shallow water. Seismic survey
supported discovery of conventional oil and gas reserves and the
unconventional gas resources. (Bloomberg)
 UAE's Al Dahra, Israel's Watergen sign strategic partnership on
water security – Abu Dhabi-headquartered Al Dahra Agricultural
Company and Israel’s Watergen have signed a strategic
partnership in the field of water security, UAE news agency
WAM said. Since the UAE and Israel agreed to establish formal
ties in August, several agreements have been signed between
companies in the two countries, particularly in the fields of
technology and agriculture. Al Dahra and Watergen agreed to
establish a permanent center in Abu Dhabi to produce and
distribute machinery for producing water for drinking and
irrigation in the region. “The agreement aims to build a strategic
partnership between the two sides to provide water from the air
and add a renewable source of clean water suitable for human
and agricultural consumption,” WAM said. (Reuters)
 JinkoSolar sells stake in Abu Dhabi Sweihan Power Station –
JinkoSolar Holding Co. Ltd. said its wholly-owned subsidiary
JinkoSolar Sweihan (HK) Ltd. has signed a share and debt
purchase agreement with Jinko Power (HK) Co. Ltd., an
indirectly wholly-owned subsidiary of Jinko Power Technology
Co. Ltd. Pursuant to the agreement, Sweihan HK will sell its 50%
equity interest in Sweihan Solar Holding Co. Ltd. to Jinko HK.
Sweihan Holding holds a 40% equity interest in Sweihan PV
Power Company, the operating entity of a 1,200 MW
photovoltaic power plant in Abu Dhabi. Upon completion of the
deal, Jinko HK will indirectly hold a 20% equity interest in the
project company. Closing of deal is subject to approvals by
Emirates Water and Electricity Company, other shareholders of
Sweihan Holding and the project company, and the project
finance lenders. (Bloomberg)
 Moody's assigns Ba2 corporate family rating to Kuwait
Investment Company; outlook changed to negative – Moody's
Investors Service has assigned a Ba2 corporate family rating
(CFR) and Ba2-PD probability of default rating to Kuwait
Investment Company (KIC) and concurrently withdrew KIC's
Ba2 long-term issuer ratings. The outlook was changed to
negative from stable. The assignment of a Ba2 corporate family
rating to KIC is in line with Moody's practices for speculative
grade issuers. The corporate family rating replaces the issuer
rating that is typically reserved to investment grade issuers. The
change does not involve a change of methodology or rating
rationale. The change in the company's outlook to negative
reflects Moody's view that subdued economic growth associated
with the coronavirus pandemic and lower oil prices will continue
to depress KIC's financial performance over the next 12 to 18
months. While KIC's financial performance has substantially
improved since the peak of the crisis in March 2020 thanks to
market recovery, Moody's believes the firm's future revenue and
profitability will remain volatile and highly sensitive to market
shocks. Declines in the fair value of the company's significant
investment portfolio have negatively impacted earnings,
leverage metrics and capital buffers. Going forward, reduced
levels of investment and fee income will likely translate in a very
weak leverage ratio. As of September 2020, leverage ratio as
measured by gross debt-to-EBITDA was 17x. The assignment of
a Ba2 CFR primarily reflects the high probability of the Kuwaiti
government's (A1, stable) support in case of need. KIC is
considered a government-related issuer (GRI), recognizing (1)
KIC's 76% ownership by the Kuwaiti government's sovereign
wealth fund (Kuwait Investment Authority or KIA), and (2)
KIA's continuous contribution to KIC through funding support
and business generation. KIC's standalone credit profile reflects
KIC's (1) modest asset management franchise, which lacks
critical size, displays limited distribution networks and a narrow
product range, resulting in low levels of recurring fee income; (2)
high level of total debt/EBITDA; (3) elevated balance sheet risk
associated with proprietary investments in equities, real estate
and mutual funds, which are subject to market risk and price
volatility. The credit profile also reflects the company's
relatively profitable business model and access to low-cost
deposits from government-related entities, including KIA.

9. Page 9 of 10
However, the reliance on short term funding leads to significant
contractual asset and liability maturity mismatches. The quality
of KIC's revenue structure has improved in recent years but
remains weak reflecting the firm's high balance-sheet exposure
to market risks. This derives mainly from its KD163mn direct
investment portfolio, equivalent to around 158% of the
company's tangible equity as at end-September 2020. While
current capital buffers remain solid at KD103mn, deterioration in
market conditions prompted by the pandemic have led to
significant downward adjustments to fair values and reduced
these buffers from KD126mn in December 2019. The firm's net
loss on financial assets and reduced fees, commission and rental
income have translated into a loss before tax of KD11.8mn for
the nine months that ended in September 2020. More positively,
KIC's funding structure remained resilient despite its short term
and concentrated nature. As of September 2020, KIC had drawn
$298mn in bank facilities and depositor lines while USD399
million remained available. In line with KIA's support, we do not
expect funding lines to dry. KIC is unlikely to be upgraded while
the outlook is negative. Factors that could lead to an affirmation
of the rating with a stable outlook include the following: 1) a
sustained reduction in debt-to-EBITDA to below 5x, 2) a further
reduction in KIC's investmentbook, 3) a significant development
of KIC's asset management franchise. Factors that could lead to
a downgrade include the following: 1) a reduction in KIA's
willingness to provide capital and liquidity support to KIC; 2)
significant investment losses, leading to capital erosion, 3) a
deposit/borrowings flight that exerts pressure on KIC's funding
and liquidity profiles, 4) a decline in assets under management
(AUM), which would strain the company's recurring
management fee income. (Bloomberg)
 KPC offers Kuwait South Ratqa for end-December loading – KPC
offered 600k bbl of Kuwait South Ratqa crude for December 28-
29 loading from Mina Al-Ahmadi, according to a tender
document. Cargo will be sold at a spot differential to avg DME
Oman and Platts Dubai quotations. Bids are due on December 2,
is valid until December 3. (Bloomberg)
 Oman sells cargo on FOB basis for December loading – Oman
LNG sold a cargo on an FOB basis for December 21 loading,
according to traders with knowledge of the matter. Cargo sold
via tender that closed on November 24. (Bloomberg)
 S&P affirms Bahrain 'B+/B' ratings; outlook Stable – S&P
affirmed its 'B+/B' long- and short-term foreign and local
currency sovereign credit ratings on Bahrain. The outlook is
stable. The transfer and convertibility assessment on Bahrain is
still 'BB-'. The stable outlook indicates that S&P expects Bahrain
to benefit from further disbursements under the $10bn GCC
support package, and that its neighbors would likely provide
additional further extraordinary support, if required. S&P
expects the government to continue implementing measures to
reduce the budget deficit. In case of a downside scenario, S&P
could lower the ratings over the next year if foreign currency
reserves decline, reducing the government's ability to service
external debt in a timely manner. S&P could also lower the
ratings if the government's budgetary consolidation measures
slow, increasing the debt and debt-servicing burden beyond our
current expectations. The rating could also come under pressure
if, contrary to our expectations, Bahrain's large banking system
suffered a loss of short-term external financing, including from
nonresident deposits. In case of a upside scenario, although not
likely over the next year, S&P could raise the ratings by 2023 if
Bahrain's budgetary position improved significantly beyond
S&P’s current expectations. S&P would also consider raising the
ratings if GDP per capita trend growth strengthens. Low oil
prices in 2020 triggered a sharp widening in the government's
fiscal deficit and a substantial increase in government debt.
Bahrain's external resilience has also weakened, as the central
bank's official foreign currency reserves are now significantly
smaller than they were at year-end 2019. Nevertheless, S&P
anticipates that the government's ongoing reforms, which are
intended to reduce the deficit, should help improve fiscal
flexibility over the forecast period to 2023. S&P also predicts that
oil prices will be higher in 2021 and the ongoing support from
other GCC sovereigns should support Bahrain's reserve position
over the next year. Although S&P expects further financial
support will be provided, if needed, Bahrain received no
additional or accelerated support this year, even though oil
prices are now well below the price that prevailed when the GCC
support package was determined. S&P believes disbursements
from the GCC were initially intended to cover 50% of the
government's financing needs, but may not align with Bahrain's
debt repayments, leaving concerns over timeliness. Bahrain's
economy is relatively diversified for the region--less than 20% of
the economy is dependent on oil. That said, its government
revenue is dependent on hydrocarbons, with over 70% of its
revenue from oil. Similar to other GCC sovereigns, Bahrain's
corporate and household sectors are taxed only lightly. As a
result, its budget revenue is volatile. When oil prices are low,
unless the government demonstrates a willingness to sharply
cut expenditure, it has relatively limited tools available to
increase revenue. That said, this has been gradually changing
since the introduction of value-added tax (VAT) in 2019. The
government's debt burden is high and increasing. (Bloomberg)

10. Contacts
Saugata Sarkar, CFA, CAIA Shahan Keushgerian Zaid al-Nafoosi, CMT, CFTe
Head of Research Senior Research Analyst Senior Research Analyst
Tel: (+974) 4476 6534 Tel: (+974) 4476 6509 Tel: (+974) 4476 6535
saugata.sarkar@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa zaid.alnafoosi@qnbfs.com.qa
Mehmet Aksoy, PhD QNB Financial Services Co. W.L.L.
Senior Research Analyst Contact Center: (+974) 4476 6666
Tel: (+974) 4476 6589 PO Box 24025
mehmet.aksoy@qnbfs.com.qa Doha, Qatar
Disclaimer and Copyright Notice: This publication has been prepared by QNB Financial Services Co. W.L.L. (“QNBFS”) a wholly-owned subsidiary of Qatar National Bank (Q.P.S.C.). QNB FS is
regulated by the Qatar Financial Markets Authority and the Qatar Exchange. Qatar National Bank (Q.P.S.C.) is regulated by the Qatar Central Bank. This publication expresses the views and
opinions of QNBFS at a given time only. It is not an offer, promotion or recommendation to buy or sell securities or other investments, nor is it intended to constitute legal, tax, accounting, or
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Page 10 of 10
Rebased Performance Daily Index Performance
Source: Bloomberg Source: Bloomberg (*Data as of November 24, 2020)
Source: Bloomberg (#
Market was closed on November 27, 2020) Source: Bloomberg (*$ adjusted returns)
60.0
80.0
100.0
120.0
140.0
160.0
Oct-16 Oct-17 Oct-18 Oct-19 Oct-20
QSE Index S&P Pan Arab S&P GCC
0.1%
(0.1%) (0.0%)
0.4%
(0.1%)
(0.3%)
0.3%
(0.5%)
0.0%
0.5%
SaudiArabia
Qatar
Kuwait
Bahrain
Oman*
AbuDhabi
Dubai
Asset/Currency Performance Close ($) 1D% WTD% YTD% Global Indices Performance Close 1D%* WTD%* YTD%*
Gold/Ounce 1,787.79 (1.5) (4.4) 17.8 MSCI World Index 2,601.45 0.4 2.4 10.3
Silver/Ounce 22.57 (3.6) (6.6) 26.4 DJ Industrial 29,910.37 0.1 2.2 4.8
Crude Oil (Brent)/Barrel (FM Future) 48.18 0.8 7.2 (41.4) S&P 500 3,638.35 0.2 2.3 12.6
Crude Oil (WTI)/Barrel (FM Future) 45.53 (0.4) 8.0 (35.1) NASDAQ 100 12,205.85 0.9 3.0 36.0
Natural Gas (Henry Hub)/MMBtu# 2.23 0.0 1.8 6.7 STOXX 600 393.23 0.4 0.9 (5.4)
LPG Propane (Arab Gulf)/Ton# 55.00 0.0 7.0 33.3 DAX 13,335.68 0.4 1.5 0.7
LPG Butane (Arab Gulf)/Ton#
64.00 0.0 15.8 (3.6) FTSE 100 6,367.58 0.1 0.3 (15.6)
Euro 1.20 0.4 0.9 6.7 CAC 40 5,598.18 0.6 1.9 (6.4)
Yen 104.09 (0.2) 0.2 (4.2) Nikkei 26,644.71 0.4 4.4 12.6
GBP 1.33 (0.3) 0.3 0.4 MSCI EM 1,230.72 0.1 1.8 10.4
CHF 1.10 0.0 0.5 6.8 SHANGHAI SE Composite 3,408.31 1.1 0.9 11.7
AUD 0.74 0.3 1.2 5.2 HANG SENG 26,894.68 0.3 1.7 (4.6)
USD Index 91.79 (0.2) (0.7) (4.8) BSE SENSEX 44,149.72 (0.2) 0.6 7.0
RUB 75.86 0.2 (0.4) 22.4 Bovespa 110,575.50 0.3 4.3 (4.4)
BRL 0.19 (0.1) 0.7 (24.8) RTS 1,302.43 (0.4) 3.1 (15.9)
132.4
125.7
98.6